Multi-currency

## Multi-currency (Definition) In accounting, multi-currency refers to the capability of managing and reporting financial transactions in multiple currencies while maintaining accurate records in a base currency.

Multi-currency accounting allows businesses to operate in various international markets by handling transactions in different currencies. It involves recording transactions in their original currency and converting them to the company's base currency for consolidated reporting. This feature enables businesses to maintain separate currency accounts, perform currency conversions, and generate financial reports that reflect both foreign currency amounts and their base currency equivalents. Multi-currency functionality is crucial for companies engaged in international trade or operating in multiple countries, as it provides a clear view of financial positions across different currencies while ensuring accurate and compliant financial reporting.